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Compliance Updates

Esports suppliers must lead from the front – PandaScore’s Colorado licence

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Esports player age verification should be simple

 

Esports betting in the United States is a yet to be fully tapped, and with more regulatory progress the total market and opportunity in esports continues to grow.

It’s why at PandaScore, we recently acquired our first license in the lucrative American market, in the esports-friendly state of Colorado. The move is a strong signal of our ambition in the US, but it also sets out our methodology for solving the uncertainty problem that US esports betting currently suffers from.

Supplier licensing should lead the way

The unknowns about what markets and lines can be offered are a key piece of the puzzle in many jurisdictions. Uncertainty around the legislation means operators are tentative to jump in with both feet. At PandaScore, we’re helping operators navigate US esports betting regulation on a state-by-state basis, so they can make business led decisions in markets with right balance of stability and opportunity.

Except for a few states, esports betting regulation is relatively  new: there’s not a great deal of precedent to work from, and its quickly evolving nature means there’s likely more work to be done in the future. We plan to be at the forefront of making sure that esports betting works for the whole ecosystem: operators, suppliers, regulators and the betting public.

The regulatory framework across the country may be shifting at different paces, but almost all states are going in one direction: expansion.

Esports suppliers have a duty to show operators the way and give them the tools, knowledge and expertise to make the right decision. We don’t believe in going all guns blazing, but entering markets with some certainty around esports in a considered fashion.

We can be more confident that those specific markets are built for esports, with Colorado being PandaScore’s first step for several reasons.

Why Colorado

When deciding which market to enter, we consulted heavily with our customers and whittled it down to states that had the right mix of commercial opportunity, solid regulatory environment and straightforwardness in licensing.

Since regulating esports, Colorado has had a friendly framework for esports. The catalogue for regular betting includes a wide range of esports titles based on approved games and tournaments by the publisher or regulator – which follows some similarities to how traditional sports betting is structured.

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The process itself was simple and clear, with clear terms and commercials that promote investment, entrepreneurship and innovation – all key ingredients for growing new markets and ambitious organisations to build new audiences.

Colorado is the natural next step in PandaScore’s service-minded, client-first approach. There’s already a generation of bettors who are seeking out esports betting products, esports suppliers need to be the source of knowledge and expertise that helps guide and amplify the esports ambitions of their clients.

Service-minded approach, client-led growth

We bring operators into the licensing conversation from the outset, exploring the licenses most valuable to them and then leveraging our lean, efficient operating model to get it done.

We’ve proven we’re serious about the US market, and that we can get a license efficiently, so if an operator desires a specific jurisdiction, we base our decisions on the revenue potential, give them a clear, no-spin picture of the market, and put in the hard work of licensing to provide our services in the US.

Player age verification as a mandatory service

A huge part of that no-spin picture is addressing the concern and risk around player age verification in esports. Compliance is paramount for suppliers and operators alike, so knowing the requirements from state to state is essential.

PandaScore has been offering player age verification for years and is well established on this front thanks to years of servicing jurisdictions like Australia and Sweden. We already have an API that clients use for peace of mind, and are beefing it up as a standalone service intended to support regulators and governing bodies to ensure compliance, confidence and growth.

Suppliers need to lead from the front for US esports betting to succeed. It’s not just about having the best product – they need to be an expert on relevant regulation, genuinely serve the expansion interests of clients and be a truly safe pair of hands that actively supports and serves operators, bettors and regulators alike.

 

Author: Oliver Niner, Head of Sales at PandaScore.

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Canada

AGCO issues penalties of $151,000 against Great Canadian Entertainment for alleged age verification failures

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AGCO issues penalties of $151,000 against Great Canadian Entertainment for alleged age verification failures

 

The Alcohol and Gaming Commission of Ontario (AGCO) has issued $151,000 in penalties to Great Canadian Entertainment for allegedly failing to prevent minors from accessing gambling on multiple occasions at three Toronto-area casinos.

As part of its investigation, the AGCO reviewed four separate incidents in which minors allegedly gained access to the casino floors and in which some of these minors participated in gambling activities – two cases at Great Canadian Casino Resort Toronto, and one at each of Casino Ajax and Pickering Casino Resort.

The AGCO is committed to ensuring casinos meet Ontario’s high standards of harm reduction and responsible gambling. The AGCO’s Standards require operators to ensure only eligible individuals are permitted into a gambling site and strictly prohibit access to anyone under 19 years of age (except in the course of employment). The Standards also mandate that casino employees have the necessary competence, skills, experience and training to effectively carry out their duties, including age verification.

This enforcement action underscores the AGCO’s dedication to protecting youth and other vulnerable individuals.

A casino operator served with an Order of Monetary Penalty by the AGCO Registrar has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that is part of Tribunals Ontario and independent of the AGCO.

“Ontario casino operators have an obligation to ensure minors are not able to access casino floors or activities such as slot machines or table games. The AGCO will continue to monitor and hold all casino operators accountable for fulfilling this important role.”  – Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO.

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Compliance Updates

MGCB Issues Cease-and-Desist Order to BetUS

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The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetUS, an offshore gambling operator, for illegally offering internet gaming and sports betting to Michigan residents without proper licensure.

Investigations by the MGCB revealed that BetUS was accepting wagers from Michigan residents on various gambling activities, including sports and casino-style games, without the necessary state authorization. This operation violates Michigan’s Lawful Internet Gaming Act, the Gaming Control and Revenue Act, and the Michigan Penal Code.

“Unlicensed operators like BetUS undermine the integrity of Michigan’s regulated gaming market and expose consumers to potential risks. The MGCB is committed to protecting Michigan residents by ensuring that all gambling activities are conducted legally and responsibly,” said Henry Williams, Executive Director of MGCB.

The cease-and-desist order mandates that BetUS immediately halt all operations involving Michigan residents. The company has 14 days to comply or face further legal action in coordination with the Michigan Department of Attorney General.

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Compliance Updates

Peru Reports 40% Drop in Illegal Online Gambling

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Peru’s Ministry of Foreign Trade and Tourism (Mincetur) reported that, a little more than a year after having implemented the law that regulates the online sector, it has been able to reduce by 40% the offer of illegal games in digital platforms and applications.

In a public statement, the Executive portfolio in charge of regulating gambling also highlighted that, thanks to the inspection work, 15% of the illegal websites “have left the Peruvian market” and that “payment methods providers and financial entities have been contacted to block services to unauthorized operators”.

Based on this, Mincetur highlighted that “Peru has managed to position itself as a regional referent in the integral regulation of gambling” and that, through the normative framework, it was possible to “protect the consumer, guarantee transparency in the operations and promote the formal and sustainable economic development”.

The Ministry highlighted that with the implementation of Law No 31557, which regulates sports betting and online games, “the country became the third country in Latin America to establish clear regulations for this activity”.

“Since its entry into force in February 2024, 60 technological platforms have been authorized and 280 linked service providers have been registered, as well as the accreditation of nine international certification laboratories,” Mincetur said.

In this regard, the Ministry stated that “this regulation has made it possible to formalize the digital sector, promoting an environment of trust for both operators and users.” At the same time, it has allowed “new investment opportunities, boosting the digitalization of entertainment and strengthening the country’s tax collection”.

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